HD Hyundai Heavy Industries Union Initiates Strike Procedures Amid Booming Shipbuilding Industry

ULSAN, South Korea — Despite the thriving shipbuilding industry leading to HD Hyundai Heavy Industries (HD HHI) surpassing its annual order target ahead of schedule, the company’s union has begun the process of initiating a strike. The union, which is part of the Korean Metal Workers’ Union (KMWU), filed for labor dispute mediation with the Ministry of Employment and Labor on July 19, according to The Chosun Daily.

This decision follows the 15th round of pay negotiations that took place at HD HHI’s Ulsan headquarters on July 17. During these talks, the union voiced its frustration over what it perceives as management’s slow response to their demands.

“We believe we’ve sufficiently explained our demands over the 15 negotiation sessions, and given that we presented our demands on April 30, the management has had ample time to review them. However, the management’s delays appear to be an attempt to wear down the union. Therefore, based on the negotiations, we will apply for labor dispute mediation with the Ministry of Employment and Labor,” a union representative stated.

Steps Toward a Strike

Filing for labor dispute mediation is often a precursor to a strike. The National Labor Relations Commission, under the Ministry of Employment and Labor, will review the application, listen to both parties, and propose a mediation plan after a 10-day period. If an agreement is not reached, the commission will declare a mediation breakdown, enabling the union to legally engage in strikes or other forms of industrial action. Management, in response, can order a lockout.

Upcoming Strike Authorization Vote

In conjunction with the mediation application, the union plans to conduct a strike authorization vote among its members from July 22 to 24. The union’s demands for this year include:

• A basic salary increase of 1,598,000 won.
• Changes to performance-based bonus calculations.
• An extended retirement age.
• Veto power over promotions.

Despite the union’s persistence, management has yet to present a counterproposal. The next round of negotiations is scheduled for July 23, aligning with the ongoing strike authorization vote.

Industry Context

The shipbuilding industry has seen significant growth, benefiting companies like HD HHI. The company’s early achievement of its annual order target highlights this prosperity. However, the union’s actions indicate underlying tensions related to labor conditions and compensation.

The outcome of the upcoming negotiations and the strike authorization vote will be crucial in determining whether the union proceeds with industrial action, potentially impacting operations at one of the leading shipbuilding firms in South Korea.